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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices--one in Toronto and one

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Middleton Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two offices--one in Toronto and one in Vancouver. The firm classifies the direct costs of consulting jobs as variable costs. A segmented contribution format income statement for the company's most recent year is given below: Office Total Company Toronto Vancouver Sales $ 840,000 100.00% $140,000 100% $ 700,000 100% Variable expenses 28,000 20 350,000 50 378,000 45.00 112,000 350,000 80 50 Contribution margin Traceable fixed expenses 462,000 55.00 180,600 21.50 75,600 105,000 54 15 Office segment margin 281,400 36,400 33.50 26% $245,000 35% Common fixed expenses not traceable to offices Operating income 210,000 25.00 $ 71,400 8.50% Required: 1. By how much would the company's operating Income Increase if Vancouver Increased its sales by $79,000 per year? Assume no change in cost behaviour patterns Net operating incomo Required: 1. By how much would the company's operating income increase if Vancouver increased its sales by $79,000 per year? Assume no change in cost behaviour patterns Net operating income 2-a. Refer to the original data. Assume that sales in Toronto increase by $160,000 next year and that sales in Vancouver remain unchanged. Assume no change in fixed costs. Prepare a new segmented Income statement for the company. (Round your percentage answers to 2 decimal places.) Total Company Amount % Toronto Amount Sogments Vancouver % Amount

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